From Flexi to Top-Up: Most Popular Types of SIP Investments in India

SIPs are continuing their winning streak in India’s investment space, hitting an all-time high of ₹28,464 crore in monthly contributions in July 2025, as per AMFI. This remarkable surge showcases the rising confidence of investors in the power of disciplined, goal-based investing.

From Flexi SIPs to Top-Up SIPs, each variant brings its own unique benefits to match diverse financial goals. Dive in to explore the 7 most popular types of SIPs and discover how each one can help you grow long-term wealth with ease and consistency.

7 SIP Types Every Smart Investor Should Know

There are different types of SIP available for investors. Dive deeper into each type to gain a thorough understanding and make the most informed decision. 

Regular SIP

In a regular SIP, you invest a fixed amount at regular intervals, usually monthly. This way, you develop an investment habit and eventually, leverage the power of compounding over time. 

Regular SIPs are suitable for those who prefer a disciplined investing approach and a fixed investment pattern.

Top-up SIP

With top-up SIPs, you can increase your investment amount periodically. You are allowed to choose to allocate more funds in SIP at predefined intervals. 

These are the perfect choice for investors looking to boost their wealth accumulation in line with their increasing financial capacity. 

Flexible SIP

As the name suggests, flexible SIPs offer flexibility to investors in terms of adjusting SIP contributions and intervals, according to your evolving financial situations. You can increase, decrease, or even pause your SIP investments as needed.

The main objective is to help investors achieve a target portfolio value, suggesting that they should invest more when market values are low and less when they are high.

Multiple SIP

Multiple or multi SIPs enable you to diversify your investment portfolio across multiple asset classes, all with a single SIP plan. 

By choosing this type of SIP,  you not only reduce the risk potential but also optimise returns and enhance portfolio stability over time.

Perpetual SIP

These SIPs remain invested in the market until you stop or modify the plan. Far more different from regular SIPs, these offer you the convenience of keeping investments ongoing, without manual intervention in the renewal process. 

However, as per NACH guidelines, effective from October 1, 2023, SIPs can be set for a maximum duration of 30 years, and mentioning the final collection (end) date has been made mandatory. 

Tax-saving SIP

Through tax-saving SIP or Equity Linked Savings Scheme (ELSS), you can invest in equity mutual funds along with gaining significant tax benefits under Section 80C of the Income Tax Act. 

These SIPs come with a lock-in period of 3 years and help you avail dual benefits: one is to avoid tax, and the other is to generate wealth through equity investments. 

Trigger SIP

These types of SIP enable you to set triggers beforehand, considering market conditions and the performance of the funds which you invested in. You can make (the investment-related decisions) the process automated by triggering SIPs. 

These are suitable for investors seeking to capitalise on market fluctuations by investing automatically when specific pre-set conditions are fulfilled. 

How Does SIP Work?

A SIP or Systematic Investment Plan works in a disciplined way. Through SIPs, you invest a set amount of money in mutual funds at regular intervals, such as weekly, monthly, or quarterly. The fund is used to buy units of different schemes, depending on the Net Asset Value (NAV) on the day of investment.

When markets experience a downfall, you can buy more units; on the contrary, you can buy fewer units when markets experience rapid growth. It is called rupee cost averaging, which helps minimise the effects of market fluctuations over time. 

Benefits of Investing in SIPs

Beyond developing the habit of consistent and disciplined investing, investing in SIPs offers several other benefits. They are:

Rupee Cost Averaging Factor

Let’s understand the concept with an example! Rohit invests ₹2,000 monthly in an equity mutual fund through SIP. Over five months, the NAVs were ₹20, ₹18, ₹22, ₹16, and ₹24, giving him units of 100, 111.11, 90.91, 125, and 83.33, respectively.

His average NAV is ₹20, while the average cost per unit is ₹19.6. This demonstrates the Rupee Cost Averaging benefit, buying more units when prices fall and fewer when they rise, which lowers the average cost and reduces market volatility.

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Investment Flexibility

SIPs, specifically Flexible SIPs, are curated considering this factor. With these financial instruments, you can increase or decrease your SIP contribution based on your financial situation. This allows you to manage emergencies without disrupting your investment journey.

Low Entry Barrier

Even with ₹500, you can start SIP, making it perfect for beginner investors or investors who have limited funds to invest. With a consistent habit for at least 8 to 10 years, even small monthly contributions help accumulate wealth over time.

Key Things to Remember Before Investing in SIPs 

Before investing in SIPs, know the key charges that can impact your returns.

• Exit Load: It refers to the charge you need to bear when you redeem the units before a certain period (typically within 1 to 3 years). Generally, it starts at 1% and significantly varies based on which fund you choose.
• Expense Ratio: The expense ratio refers to the annual maintenance fee charged by Asset Management Companies (AMCs) to manage a fund. It's advisable to choose funds with a lower expense ratio to earn better returns.

How to Invest in SIP? 

Here are the steps to follow:

Step 1: Do thorough research. Start by checking past performance and the fund manager’s expertise. Choose a mutual fund that aligns with your goals, risk appetite, and investment horizon. 

Step 2: Decide the amount you can afford to invest at your chosen intervals. Start with a small amount and gradually increase it as your financial capacity improves.

Step 3: Choose a frequency. Suppose you prefer to invest monthly. Then select a date on which the amount will be automatically debited from your account. 

Step 4: Complete the KYC process accurately. It is a mandatory step for all investors.

Step 5: Set up the SIP either online through several investment apps or the mutual fund’s official website. Or you can start SIP offline through your bank or fund house. 

Final Words 

Understanding the different types of SIP empowers investors to align their investments with their financial goals. To make the most of your SIP journey, follow the 7-5-3-1 Rule — stay invested for 7 years, diversify across 5 fund categories, overcome 3 emotional phases, and increase contribution once every year. 

This disciplined strategy helps you harness compounding, minimise risks, and create wealth with confidence.

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